What is safety days of supply in SAP PP-MRP - Material Requirements Planning?

SAP Term: safety days of supply

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: Minimum buffer level that must be met to cover requirements. The minimum safety buffer is calculated on a daily basis within a specific time period. If the stock level falls below the buffer level defined for the safety days of supply, the system triggers procurement or production automatically and the stock level is filled up to the buffer level defined for the target days of supply see target DOS. The safety DOS is specified as a factor of the current daily requirement.  The absolute value for the buffer level is derived from that. For example: Current daily requirement = 100, safety DOS = 1, safety buffer level = 100 × 1 = 100 If the stock level falls below 100, the stock level will be filled up to the value defined for the target DOS. The safety DOS is always smaller than the target DOS.

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• Key Concepts: 
  Safety days of supply is a term used in SAP's Material Requirements Planning (MRP) component. It is a parameter used to determine the amount of safety stock that should be kept on hand to ensure that there is enough inventory to meet customer demand. The safety days of supply is calculated by taking the average daily demand for a product and multiplying it by the number of safety days. 
  
  How to use it: 
  In order to use safety days of supply, you must first determine the average daily demand for a product. This can be done by looking at historical sales data or forecasting future demand. Once you have determined the average daily demand, you can then calculate the safety days of supply by multiplying the average daily demand by the number of safety days. 
  
  Tips & Tricks: 
  When setting the number of safety days, it is important to consider both customer service levels and inventory costs. If you set the number too low, you may not have enough inventory on hand to meet customer demand. On the other hand, if you set it too high, you may be carrying too much inventory and incurring unnecessary costs. 
  
  Related Information: 
  Safety days of supply is just one parameter used in SAP's MRP component. Other parameters include lead time, lot size, and reorder point. Understanding how these parameters interact with each other can help you optimize your inventory management process and ensure that you are meeting customer demands while minimizing costs.